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From the archive – councils prepare for tendering revamp
Inside Housing looks back at what was happening in the sector this week five, 15 and 25 years ago
25 years ago
Councils were preparing themselves to allow private companies to bid for services including the administration of housing benefit, following a U-turn from government.
Inside Housing reported that the Department of Environment (DoE) was set to introduce rules on compulsory competitive tendering for local authority financial services that would include housing benefit administration as a ‘defined activity’.
There were fears that the move could see separate firms dealing with benefit payments and rent collection, with councils concerned that this could also make it difficult to enforce housing management contractors’ agreements.
The Chartered Institute of Public Finance and Administration (CIPFA) suggested that local authorities should be allowed to choose whether or not housing benefit administration was included within financial services or remained within housing management. The Institute of Housing wrote to the DoE demanding clarification, warning that councils were ill-prepared for the change.
15 years ago
Dr Norman Perry, chief executive of the Housing Corporation, announced he would leave the job early, the following March, after reaching an agreement with the body’s new chair Peter Dixon.
Mr Dixon denied that the decision had been made because of the corporation’s handling of a high-profile governance crisis at Places for People.
A senior source in the sector told Inside Housing that the corporation would be looking for a “big hitter” to replace Dr Perry, while another suggested that there had been tensions with some board members. “I think he’s a slightly beleaguered figure at the moment,” the source added.
The announcement came just a month after Mr Dixon took over as chair of the organisation.
Dr Perry joined the Housing Corporation in 2000 with a three-year contract, but with an option to extend for a further two years.
Paying tribute to Dr Perry’s stint at the helm, Jim Coulter, chief executive of the National Housing Federation, said: “Norman increased the profile of the corporation at a time of great change for the sector.”
The departure sparked renewed speculation about a merger with fellow quango English Partnerships, Inside Housing reported. That merger eventually happened in 2008 with the creation of the Homes and Communities Agency.
A survey of housing association employees found that one in five had taken on a second job to make ends meet.
The research from trade union Unison revealed that nearly a fifth of staff at housing associations had suffered a pay cut in the previous 12 months, with nearly the same proportion reporting debts of more than £10,000, excluding mortgages.
Unison cited cuts to associations’ social care businesses as a major cause of staff pay decreases.
The union also revealed that nearly one in 10 staff at London and East Midlands landlords were on zero-hours contracts. The national figure was 4%.
Grainia Long, chief executive of the Chartered Institute of Housing, said the survey revealed the “scale and nature of the pressure on the workforce”.
The National Housing Federation said the fact staff were working under pressure was a “concern”.